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Jim Heneghan, a former grain trader, describes Brazil's struggle to move crops to ports because of poor roads and rail congestion. He contrasts this with the US barge system on the Mississippi, which gives American exporters a transport cost advantage.
Brazil's logistics bottlenecks and the US river cost advantage shape which origin wins export sales, which affects soybean and corn price spreads.
commodityconversations.comjonkingsmanJun 24, 2024After 230 past neutral logistics events, SOY moved a median +0.4% over 5 sessions (55% higher; middle half -1.4% to +2.0%), and +0.1% over 20.
After 284 past neutral logistics events, CORN moved a median -0.0% over 5 sessions (49% higher; middle half -1.3% to +1.4%), and -0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
